EFG Hermes Leasing, the leasing arm of the leading financial services corporation in the Middle East and North Africa, has signed a cooperation agreement with Philips Egypt to provide leasing solutions for healthcare professionals in private practices, startups, small to medium enterprises (SMEs), and hospitals, according to a press release on Tuesday.
Both organisations plan to leverage their respective experience in Egypt’s leasing and healthcare sectors to develop financing plans tailoured to meet the specific needs of startups of Egypt’s healthcare market as well as for more established SMEs.
There are substantial variations in the geographic distribution of healthcare facilities in the country, with Upper Egypt being relatively under-served.
The majority of healthcare facilities in rural governorates are small, private health clinics and diagnostic centres.
Most small and medium-sized private clinics in Egypt have limited access to financing from banks due to the perceived high-investment risks.
As a result, they are not able to invest in medical equipment, carry out necessary renovation works, or recruit qualified personnel.
Infrastructure constraints see the sector struggling to provide affordable, high-quality services.
The absence of flexible and innovative financing solutions make it particularly challenging for new companies, including hospitals, clinics, diagnostic centres, and pharmaceutical manufacturers, to acquire critical medical equipment.
“We are excited to combine our deep, on-the-ground experience with Philips’ extensive knowledge in the healthcare sector to develop customised financing solutions that will help unlock the growth potential of the country’s healthcare SMEs and start-ups,” said Ahmed El Kholy, CEO of EFG Hermes Leasing.
“Combined with our market-leading turnaround time, tailoured finance structuring, expert advisory, and emphasis on a long-term relationship with our clients, we will reduce high barriers to entry and help catalyse the affordability of healthcare equipment,” he added.
For his side, Sameh Gabra, the general manager of Philips Egypt and North East Africa, said, “Philips aims to contribute substantially to improving healthcare in Egypt through innovative solutions that are tailoured to local needs. Many small and medium-sized clinics and health facilities across our country would like to invest in new medical technology, but find it difficult to obtain the necessary financing.”
The vendor cooperation programme between EFG Hermes and Philips Egypt is a financial leasing solution to provide companies with value-added advisory services and tailoured financing plans, which will enable clients to acquire critical assets that meets their business goals and match global healthcare best practices.
“Ultimately, this collaboration will bolster the development of Egypt’s healthcare system as a whole by providing assistance and equipment to individual facilities and service providers,” the press release concluded.